No two lives are the same – your career, family, personal beliefs, and experiences are unique to you. That’s why life insurance does not come in a "one size fits all" policy. Deciding what will be most beneficial to your loved ones can be stressful, but our team at the Jason Ridley Agency in Colleyville, TX is here to help you navigate your options. One of the biggest things you’ll need to decide upfront will be whole or term life coverage.
Whole Life Insurance
A whole life insurance policy is "permanent insurance" intended to stay in place for the rest of your life, guaranteed to payout after your death. While the premiums typically stay the same, the value of the policy will rise over time. You can also borrow amounts of funds against the account during your life (any amount not repaid will be withdrawn from the final benefit). You can also "surrender" the policy for a direct payment, in which case your coverage will end.
Term Life Insurance
As the name suggests, term life insurance is only active for designated periods of time, i.e., 15 to 20 years. You will pay premiums only during this time, after which your coverage will end. The cash value is preset and does not change.
Which is the Right Choice for Me?
The right kind of life insurance for you will depend on your specific needs and budget. For example, many parents opt for term life because they only want coverage as long as their children are dependent on them. Others choose whole life because they don’t know what to expect in the future, and they want to make sure they are covered no matter what. It’s worth pointing out that whole life insurance is generally more complex and costly, but it comes with more advantages than term life. Term life is simpler and more affordable.
Contact the Jason Ridley Agency to learn more about your life insurance options in the Colleyville, TX area!